Effective Date: July 1, 2024
Issuing Authority: Provost
Policy Contact: Senior Vice Provost for Research, provost@mercer.edu, 478-301-2110
Purpose
The purpose of this policy statement is to set forth Mercer University’s policy and procedures in determining on-campus or off-campus Facilities & Administrative cost rate to use for a sponsored project proposal.
Scope
This policy applies to sponsored project proposals submitted by Mercer University employees.
Exclusions
Sponsored projects at the Mercer Engineering Research Center
Definitions
Leased Space: space in a building that Mercer University does not own, but which Mercer University occupies and pays a lease expense. When leased space is used to conduct a sponsored project, that project may be designated as either “on-campus” or “off-campus”, based on defined parameters. The existence of a lease does not, in and of itself, indicate off-campus designation.
Leased Space Off-Campus: space paid by a sponsored program or another entity and use of separate (non-University) services such as utilities, mail, telephone, network, and other support services. When a leased space is considered off-campus, a direct rent cost and support cost should be included in the proposal budgets and charged to benefiting sponsored projects.
Leased Space On-Campus: space paid by Mercer University and maintained with the use of University-provided support services such as utilities, mail, telephone, and network services.
Off-Campus Research: research conducted in space not owned by Mercer University AND not otherwise paid for by Mercer University from University funds. If a project is located in leased space and the lease is a direct charge to the project, then the project is off campus. When a leased space is off campus, a direct rent and support costs should be included in the proposal budgets and charged to benefiting sponsored projects.
For most federal sponsors, the “off-campus” negotiated F&A rate (26% MTDC, representing only administrative costs) applies to projects designated as off-campus. For many non-federal sponsors, the published non-federal off-campus F&A rate applies. Certain types of awards and/or sponsors stipulate specific F&A rates. In these cases, the off-campus designation is still appropriate but is not applicable to the F&A rate. For purposes of the F&A rate proposal, all direct expenditures on projects designated as off-campus are included in the same base.
On-Campus Research: research conducted in space owned, leased, and maintained by Mercer University and for which Mercer University is bearing the space costs from University funds.
Policy Statement
The on-campus vs. off-campus Facilities & Administrative (F&A) cost rate is determined on the basis of the majority of the project expenses. A project defined to be “on-campus” if 50% or more of the Mercer University activities are performed in facilities owned or rent is directly paid by Mercer University. In this case, the “on-campus” rate will apply to the entire project, including the first $25,000 of each subcontract. Projects may qualify for the “off-campus” rate if 50% or more of the project is conducted using non-university buildings and/or equipment. Tasks performed by consultants or sub-awardees should not be considered when determining if the project qualifies as on-campus or off-campus. When the off-campus rate is to be used, the proposal narrative and supporting documents should clearly demonstrate the fact that more than 50% of the project activities are to be conducted off campus, as defined in this policy statement.
When to Use the On-Campus Rate
- The on-campus rate applies to projects performed in space that the Mercer University.
- The on-campus rate applies to projects performed in leased space paid by Mercer University and provided support services.
- Rent may not be charged to projects applying the on-campus rate.
When to Use the Off-Campus Rate
- The off-campus rate applies to projects performed in leased space if paid by a sponsored program and use of separate non-university support services. A direct rent and support costs should be included in the proposal budgets and charged to benefiting sponsored
- The off-campus rate applies to projects performed in space that the University does not own and for which the University does not bear a lease cost from any University account (sponsored or non-sponsored or school/department fund source).